The FSA has published Consultation Paper 08/5: Sponsor regime - a targeted review (CP08/5). In CP08/5 the FSA is seeking views on its proposals to make changes to the sponsor regime, which is set out in LR8 of the Listing Rules.
The key proposals are to:
- Clarify the application of the principles for sponsors set out in LR8.3.
- Remove the concept of the ‘suitably experienced employee’ to demonstrate competence and replace it with a firm-wide approach to sponsor competence.
- Revise guidance as to what will generally be accepted as appropriate systems and controls of a sponsor function.
- Modernise the approach to sponsor independence by focusing on procedures for identifying and managing conflicts.
- Remove some or all of the provisions in LR8.4.5-6 on marketing of new applicants.
- Amend rules and guidance relating to record keeping including obligations regarding internal management.
- Revisit the need for regular reviews to be carried out by sponsor firms of their compliance with the approval criteria as set out in LR8.6.5-6.
- Correct typographical errors and make consequential changes to other areas in LR8 and LR16 in light of the above proposals. This will also lead to consequential amendments to LR8.7.22(3) and the removal of LR8.7.24. This was consulted on in the FSA’s Quarterly
- Consultation Paper No.14 to reflect the Regulatory Reform (Financial Services and Markets Act 2000) Order 2007 which came into effect on 12 July 2007. It also ensures that LR8 reflects the existing requirements in LR15.3.3 and LR16.3.4 to appoint a sponsor on the production of listing particulars.
The deadline for comments on CP08/5 is 6 June 2008. The FSA expects to publish and implement final Handbook text on or around 6 October 2008.
View Consultation Paper 08/5: Sponsor regime - a targeted review, 6 March 2008